Financial Sector Assessment : Republic of Tajikistan
Tajikistan’s economy is entering a downturn and the banking sector is showing substantial weaknesses. Although regulation has improved in line with recommendations of the 2007 financial sector assessment program (FSAP), supervision and enforcement...
| Main Authors: | , |
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/12/25222876/tajikistan-financial-sector-assessment http://hdl.handle.net/10986/23661 |
| Summary: | Tajikistan’s economy is entering a
downturn and the banking sector is showing substantial
weaknesses. Although regulation has improved in line with
recommendations of the 2007 financial sector assessment
program (FSAP), supervision and enforcement have been
lagging behind. The widespread solvency problems in the
sector must be addressed head-on and the authorities should
be jointly prepared to cope with the worst. As the current
banking sector development strategy is ending, the main
stakeholders in financial policy should develop a
comprehensive strategy that addresses issues in achieving
greater financial stability, efficiency, and inclusion in
Tajikistan. To fully realize the potential of its financial
infrastructure in support of financial stability,
efficiency, and inclusion, Tajikistan needs to implement
further reforms: the private credit reporting system draws
on data sourced from banks and microfinance institutions but
fails to exploit other useful data such as telecommunication
companies, utilities and insurance companies to evaluate the
creditworthiness of individuals with greater efficiency;
enforcement of immovable collateral can benefit from
improved out-of-court enforcement and credit collection
through auction sales, which is quite ineffective; and to
achieve greater use of non-cash payments, greater efforts
are needed to stimulate both demand and supply of non-cash
instruments and capture a greater share of the remittance market. |
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